Contact Janine Zuniga
Moody's Reaffirms Coronado's Aaa Rating
CORONADO, CA (March 24, 2017) – Moody’s Investors Service has issued a Aaa credit rating, its highest credit rating issued, to the city of Coronado for its exceptionally strong financial position, large tax base, and affordable debt and pension liabilities.
The Moody’s rating affirms its previous Aaa rating issued to Coronado in 2014. Coronado joins 12 other California cities, including Beverly Hills, Newport Beach and Palo Alto, with the Aaa rating, and remains the only San Diego County city with the agency’s highest rating.
According to Moody’s, Coronado has a robust financial position: “Coronado’s available fund balance as a percent of operating revenues (113.4 percent) far surpasses the U.S. median. Additionally, the net cash balance as a percent of revenue (117.1 percent) is far superior to other Moody’s-rated cities nationwide.”
“Coronado is proud to have earned a Aaa rating again from Moody’s,” said City Manager Blair King. “The rating validates Coronado’s credit position as being of the highest quality.”
The report noted that Coronado has an exceptionally healthy economy and tax base with a full value per capita ($331,502) that is much stronger than the U.S. median. The report found the City’s median family income equals 164.4 percent of the U.S. level. Finally, Moody’s reported Coronado’s fully assessed value ($7.7 billion) is materially above other Moody’s-rated cities nationwide and grew markedly from 2013 to 2016.
The Aaa rating is significantly above the median rating of Aa3 for cities nationwide. The report noted Coronado’s lack of debt. However, the Moody’s-adjusted net pension liability to operating revenues (1.9 percent) is unfavorably higher than the U.S. median and rose modestly from 2013 to 2015.
Coronado underwent Moody’s analysis of its financial records in 2013 to obtain an independent report of its current fiscal condition. Moody’s follows a set of rigid standards when ranking an agency’s creditworthiness. The follow-up report three years later reaffirmed the earlier Aaa rting.
The complete Moody’s Ratings Update is available online to subscribers at Moodys.com or to journalists by contacting Moody’s at (212) 553-0376.
Posted on 03/24/2017